Detailed answer — step by step under Michigan law

Below is a practical, plain-language explanation of what typically happens to leftover sale proceeds when someone dies without a will in Michigan.

1. The proceeds become estate property

After a person dies, any money received from selling their real or personal property belongs to the probate estate. That includes the net proceeds from a sale completed before or after death if the decedent owned the property at death.

2. A personal representative is (usually) appointed

If the decedent died intestate (without a will), someone must be appointed by the probate court to act for the estate. That person is often called a personal representative or administrator. The personal representative collects assets (including sale proceeds), pays bills, handles claims, and distributes remaining assets under the law.

3. Priority: debts, taxes, and administration costs

The personal representative must first use estate funds to pay valid creditor claims, funeral expenses, probate costs, and taxes. Michigan probate procedure governs how and when creditors are notified and how claims are allowed. You can read the Estates and Protected Individuals Code (EPIC) for the governing rules: MCL Chapter 700 (EPIC).

4. Distribution under Michigan’s intestacy rules

After paying debts and expenses, the remaining proceeds are distributed to heirs according to Michigan’s intestacy statutes (part of EPIC). Those statutes set the order and shares of distribution — for example, to a surviving spouse, children, parents, siblings, or more distant relatives depending on who survives the decedent. The specific shares depend on which relatives survive. For the statutory rules governing shares to a surviving spouse and other relatives, see the intestate succession provisions: MCL 700.2103 and the surrounding sections of MCL 700.2101 et seq.

5. Small estate procedures and avoiding formal probate

Michigan offers simplified procedures in some limited situations (small estates or transfers by affidavit) so that formal probate can sometimes be avoided. Whether those procedures apply depends on the type and value of assets and whether certain conditions are met. The probate court or a probate attorney can advise whether a small estate procedure is available.

6. If no heirs are found: escheat to the state

If the court-authorized search for heirs produces no qualifying relatives, unclaimed estate property will eventually be turned over to the State of Michigan pursuant to state law (escheat). The State’s unclaimed property process handles certain unclaimed funds; you can search Michigan’s unclaimed property database at the Department of Treasury’s website.

7. Practical example (hypothetical)

Imagine Jane owned a rental house and died without a will. The estate’s personal representative sells the house and deposits the net sale proceeds in the estate bank account. The representative files probate, notifies creditors, pays the funeral bill and valid creditor claims, and pays any estate taxes. If Jane has a surviving spouse and adult children, the representative will distribute whatever remains according to Michigan’s intestacy rules. If no relatives can be located, the representative will follow the court’s instructions for escheat and the funds may ultimately go to the State of Michigan.

Key Michigan law references

• Estates and Protected Individuals Code (EPIC), MCL Chapter 700: https://www.legislature.mi.gov/ (chapter 700)
• Intestate succession provisions (see MCL 700.2101 et seq., including the surviving spouse rules such as MCL 700.2103): MCL 700.2103

Note: Michigan statutes contain the precise rules, procedural timelines, and definitions necessary to apply these principles to any given case. The links above point to the Michigan Legislature’s site where you can read the statutes.

Helpful hints

• Get a death certificate and an inventory of known assets. The probate court and personal representative will need official documentation.
• Locate any estate records: deeds, bank statements, title papers, insurance policies, and bills. These speed up probate and claims handling.
• Contact the probate court in the county where the decedent lived. The court can tell you whether an estate file exists and who the appointed personal representative is.
• Search Michigan’s unclaimed property database if you think proceeds were turned over to the State: go to the Michigan Department of Treasury’s unclaimed property page.
• If you believe you are an heir or creditor, file a timely claim with the estate’s personal representative or petition the probate court if you cannot resolve the matter informally.
• Consider speaking with a probate attorney if the estate has significant assets, complex debts, or disputes among potential heirs. An attorney can explain deadlines, filing requirements, and your rights.
• Keep receipts and records of any payments made from estate funds. The personal representative must account for distributions and expenses to the court and heirs.